Sylvia Cronin, Director of Insurance Supervision at the Central Bank of Ireland, and a member of the EIOPA Board of Supervisors, joins during the recent European Insurance Forum to discuss whether Irish insurers was ready for Solvency II.

According to Ms. Cronin, the insurance industry in Ireland has been looking at Solvency II for the past 15 years. While there was a lot of anxiety and excitement at first, now there is “quite a lot of trepidation”, mostly because some insurers’ computer systems are not ready. Some companies are anxious about changes to a risk based capital evaluation. Overall, companies need to ensure that that their cultures are prepared.

The EIOPA Opinion on Internal Models was released recently. And while it might have significant impact on companies with internal models, Ms. Cronin says “at the moment, the opinion is based on sovereign risk exposures…and we would agree with that opinion.”

Data and reporting are also areas of concern as they relate to the readiness of companies and their systems, and their ability to transfer data requirements to the regulator and to EIOPA. Ms. Cronin says “a lot of companies have legacy systems that aren’t able to adapt to the new requirements…” Company need to be 100% complete and ready for implementation. Unfortunately, Ms. Cronin says not all companies have been able to implement all the changes required.

In addition, Ms. Cronin says changes in the investment s environment, which had strict rules in place from Solvency I, but under Solvency II, the “prudent person principal” will apply, and companies have to adapt to that new change with risk based analysis.

According to Ms. Cronin, Ireland is ready for Solvency II, having been recognized for having one of the most successful communication plans in place.

For more World Risk and Insurance News from the 2015 European Insurance Forum (EIF) Conference in Dublin, visit the dedicated EIF 2015 Channel in the On Demand Library.

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